Weekly versus Monthly Unit Value Price Indexes

9 Pages Posted: 22 Jul 2015

See all articles by W. Erwin Diewert

W. Erwin Diewert

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Kevin J. Fox

UNSW Australia Business School, School of Economics

Jan de Haan

Delft University of Technology

Date Written: July 17, 2015

Abstract

A previously overlooked source of potential bias in the Consumer Price Index (CPI) is described. We find that unit value (average) prices, commonly used for construction of the CPI should be constructed over the same period as the index to be constructed, rather than over an incomplete sub-period. The latter approach can lead to an upward bias in the CPI.

Keywords: Elementary price indexes, aggregation, inflation

JEL Classification: C43, C82, E31

Suggested Citation

Diewert, W. Erwin and Fox, Kevin J. and Haan, Jan de, Weekly versus Monthly Unit Value Price Indexes (July 17, 2015). UNSW Business School Research Paper No. 2015ECON15. Available at SSRN: https://ssrn.com/abstract=2634256 or http://dx.doi.org/10.2139/ssrn.2634256

W. Erwin Diewert

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada
604-822-2544 (Phone)
604-822-5915 (Fax)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Kevin J. Fox (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia
(02)9385-3320 (Phone)
(02)9313-6337 (Fax)

Jan de Haan

Delft University of Technology

Stevinweg 1
Stevinweg 1
Delft, 2628 CN
Netherlands

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